US economy slows as consumers cut back
The Atlanta Fed's GDPNow tool shows US economic growth slowing sharply, with estimates dropping from 4% to 1.8% for this quarter.
Key indicators like retail sales and manufacturing are weak, suggesting consumers are spending less. Higher prices and reduced wage growth are straining household budgets, with many turning to credit.
Although the economy is still growing, this slowdown could lead to job market issues and possible interest rate cuts. Investors might need to shift their focus from inflation worries to growth concerns.
Intel sells nearly half of Irish plant to Apollo for $11 billion
Intel is selling 49% of its factory in Leixlip, Ireland, to Apollo Global Management for $11 billion. This deal is part of Intel's strategy to get more outside money for its global expansion plans.
Intel's CEO, Pat Gelsinger, aims to revitalise the company by investing in new products and manufacturing plants. The sale will help Intel keep its finances strong while focusing on making top-quality chips.
The transaction will be finalised in the second quarter of 2024. Intel will prioritise using this plant for its production needs.
Nikkei drops amid weak US jobs data and strong Yen
Japan's Nikkei fell by 0.89% to 38,490.17 due to weak US labor data and a stronger yen.
US job openings hit a three-year low, hinting at potential Federal Reserve rate cuts. This led to a Wall Street rally but hurt Japan's economic-sensitive sectors like shipping and energy. The insurance sector saw the biggest drop at 3.73%, while SoftBank shares rose 4.64% on news of a major investment.
Investors should monitor US labor trends and yen movements closely as they influence global market dynamics.
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